Stitch Fix (SFIX) Stock Forecast & Price Target

Stitch Fix Inc is projecting an increase in sales for FY26, expecting between $1.28 billion and $1.33 billion, representing a year-over-year growth of 1% to 5%. The company's total revenue rose by 7.3% to $342 million in the latest quarter, surpassing consensus expectations, while the average order value (AOV) improved by 7.6% year-over-year due to a refreshed and trend-forward merchandise mix. Additionally, total inventories increased by 18.8% year-over-year, indicating a proactive approach to support larger customer fixes, particularly in the women's segment, which experienced a 19% year-over-year growth in specific apparel categories.

Stitch Fix Inc experienced a decline in active clients of 5.2% year-over-year, resulting in a total of 2.307 million clients, indicating a concerning trend in customer retention. Additionally, the company's gross margin for the first quarter contracted 180 basis points to 43.6%, underperforming against both consensus estimates and prior forecasts. The adjusted EBITDA margin guidance has been lowered to a range of 2.9% to 3.6%, reflecting a deterioration from last year's margin and signaling potential challenges in achieving profitability in the near term.